Drivers for Uber, the on-demand private taxi service that allows you to book a ride at the touch of a button, have been joining forces with one another to charge you more for your ride.
Warwick University has carried out research that exposes drivers for the taxi service are creating huge surge charges by regularly organising planned ‘mass-switch-offs’ between them.
Uber states that their prices may experience an increase ‘during times of high demand’.The company state that this typically occurs during ‘holidays, major events, bad weather and peak hours’.
According to the company, the Uber app uses a unique software ‘algorithm’ that enables them to analyse several factors in order to calculate when surge charges get lowered back down to their standard rate;
‘As more riders start waiting to request, the number of available drivers on the road increases until it once again matches the number of trip requests. At that point, we’re able to lower rates back to normal.’
However, the most shocking thing about the research is that this algorithm is being manipulated by Uber drivers. Drivers are intentionally logging off the app, meaning when you’re booking an Uber you are being tricked into believing there is a high demand for cars. This was confirmed when the researchers looked at an online forum where Uber drivers meet to chat amongst each other.
It was discovered that one London Uber driver had posted:
‘Guys, stay logged off until surge.’,
Upon being asked why, he responded;
‘Less supply high demand = surge.’
This manipulation means Uber’s surge charges are rarely being lowered back down to their ‘normal rate’ - even after peak times thanks to this plotting between drivers.
What now?
A spokesperson for Uber hasresponded to the surge charge exploitation,telling the MailOnline ‘This behaviour is neither widespread nor permissible on the Uber app, and we have a number of technical safeguards in place to prevent it from happening.’
It is the 'algorithm' that needs a makeover according to Mareike Mohlmannwho conducted the study, 'the algorithm may not only be ethically questionable, but may also hurt the company itself.'
Come on Uber, up your game and lower your prices.
*Video Courtesy of CNBC International *
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This article originally appeared on The Debrief.